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Agenda Item No. 6

 

The Vale of Glamorgan Council

 

Corporate Performance and Resources Scrutiny Committee: 24th January 2017

 

Report of the Managing Director

 

Capital Monitoring Report for the period 1st April to 30th  November 2016

 

Purpose of the Report

  1. To advise Scrutiny Committee of the progress on the 2016/17 Capital Programme for the period 1st April to 30th November 2016.

Recommendations

It is recommended :-

  1. That Committee notes the use of Delegated Authority to amend the schemes within the Barry Regeneration Partnership budget.
  2. That Committee notes the use of Emergency Powers to amend the schemes within the Castleland and Tackling Poverty budgets.
  3. That Committee notes the following budgets to be carried forward into 2017/18:-
  • Dimming of Street Lights - Carry forward budget of £750k.
  • Llanmaes Flood Management Scheme - Carry forward budget of £930k.
  • Wordsworth Park - Carry forward budget of £70k.
  • Cemetery Approach - Carry forward budget of £140k.
  • Barry Regeneration Partnership - Carry forward budget of £12k.
  • High Street / Broad Street - Carry forward budget of £240k.
  • Skills Training Centre - Carry forward budget of £279k, and rename £179k of slipped budget 'Innovation Quarter Regeneration Fund'.
  • Marketing and Disposal of the Innovation Quarter - Carry forward budget of £44k.
  1. That Committee notes the following budget is to be brought forward from the 2017/18 Capital Programme :-
  • Leisure Centre Flooring Upgrade and Changing Room Refurbishment - Bring forward budget of £134k.
  1. That Committee notes the following changes to the 2016/17 Capital Programme:-
  • Ysgol St. Baruc - Include a new scheme for £27k, funded from the Schools Investment Strategy Reserve.
  • Community Centre Works - Increase budget by £7.5k, funded by a contribution from a Community Centre.
  • Parks and Grounds Maintenance Asset Renewal - Vire £18k from Parks and Grounds Asset Renewal to Community Centre Works.
  • Parks and Grounds Maintenance Asset Renewal - Reduce budget by £12k and fund via revenue.
  • Barry Regeneration Partnership - Reduce budget by £6k and fund via revenue.
  • Barry Island Western Shelter Lighting - Increase budget by £25k, funded by an Arts Council of Wales grant.

Reasons for the Recommendations

  1. To advise Committee of the use of Delegated Authority.
  2. To advise Committee of the use of Emergency Powers.
  3. To allow schemes to be undertaken in future years.
  4. To allow schemes to proceed in the current financial year.
  5. To allow schemes to proceed in the current financial year.

Background

  1. Council on the 2nd March 2016 minute no 884 approved the original Capital Programme for 2016/17 onwards.

Relevant Issues and Options

  1. Appendix 1 details financial progress on the Capital Programme as at 30th  November 2016.
  2. For all schemes where it is evident that the full year's budget will not be spent during the year, the relevant officers are required to provide an explanation for the shortfall and this shall be taken to the earliest available Cabinet.
  3. Appendix 2 provides non-financial information on capital construction schemes with a budget of over £100k. Where a budget shown in Appendix 1 is more than £100k but is made up of several schemes that individually are less than £100k, the scheme is not included in Appendix 2.

Learning and Skills

  1. Ysgol St. Baruc - A dedicated area is required at the school to improve dining facilities. It has been requested that £27k is added to the Capital Programme to purchase benches and partitioning and this will be funded from the Schools Investment Strategy reserve.

Environment and Housing

  1. Dimming of Street Lights - Tenders have been received for the supply of lanterns and the contract award is imminent. The lead-in period for supply of the new lanterns dictates that works to commence conversion of existing lanterns to LED is now likely to commence in March. Conversion works are likely to take 4 months to complete, therefore it has been requested that £750k is slipped into 2017/18.
  2. Llanmaes Flood Management Scheme - Design and development is ongoing, however the earliest construction is now anticipated to be in the Summer 2017. It has therefore been requested that £930k is slipped into 2017/18.
  3. Community Centres Works - A net contribution of £7.5k was received from a Community Centre in order to facilitate works to a boiler system. It has therefore been requested that the Capital Programme is increased to reflect this.
  4. Leisure Centre - The Leisure Centre floor replacement and changing room works are expected to commence in March 2017 and therefore, it has been requested that £134k is brought forward from the allocated 2017/18 Capital Programme budget of £1,912k to fund flooring works (£70k) and Changing Room works at Penarth Leisure Centre (£40k) and Barry Leisure Centre (£24k).
  5. Wordsworth Park - Local residents, school pupils and their parents, and others with an interest in the future of Wordsworth Park, were invited to have their say on the proposed improvements. A consultation ran from Monday 19 September until Monday 31 October 2016. The consultation results have been considered, and the Council's Principal Landscape Architect is now preparing a brief based upon the consultation responses and will shortly be undertaking a tendering exercise. It is likely that the chosen contractor will be appointed early next financial year. Improvements to the park will be implemented prior to September 2017, therefore slippage of £70k has been requested.
  6. Parks and Grounds Maintenance Asset Renewal - A virement of £18k has been requested from a resulting underspend on the Barry Island Community Centre roof renewal scheme within Parks and Grounds Asset Renewal, to Community Centres Works. This is in order to progress further Community Centre asset renewal projects in 2016/17.
  7. Parks and Ground Maintenance Asset Renewal - Following a review of expenditure within the asset renewal budget for Parks and Ground Maintenance, it is considered that £12k of expenditure on licences should be treated as revenue expenditure rather than capital. It has therefore been requested that the Capital Programme is reduced accordingly and the costs be reported through revenue.
  8. Cemetery Approach - Slippage of £140k into 2017/18 has been requested for the community building element of this scheme, due to a minor delay in agreeing the fit out requirements and the need to tender this element separately.

Managing Director and Resources

  1. Barry Regeneration Partnership - Following a review of expenditure within the Barry Regeneration Partnership, it is considered that £6k of expenditure on project staffing should be treated as revenue expenditure rather than capital. It has therefore been requested to reduce the Capital Programme accordingly and the costs be reported through revenue.
  2. Barry Regeneration Partnership - It has been requested that the remaining £12k budget in the Economic Development Unit is slipped into 2017/18, as the fixed term post has not yet been filled and will be re-advertised in the New Year.
  3. Barry Island Western Shelter Lighting - A grant of £25k has been received from the Arts Council of Wales towards this scheme. It has been requested that the Capital Programme is increased by £25k to reflect this.
  4. High Street / Broad Street - Approximately one third of Phase 1 of this scheme is currently incomplete due to efforts to minimise disruption to traders, delayed delivery of materials and unsuitable weather conditions at critical points. This has had a subsequent knock on effect to the timings of the programme and therefore slippage of £240k into 2017/18 has been requested.
  5. Skills Training Centre - Part of the conversion of the Skills Training Centre was dependent on obtaining Welsh Government approval, which has been delayed. Therefore it has been requested that the budget of £279k is slipped into 2017/18. It has also been requested that the unallocated element of this scheme, totalling £179k, is separately renamed as 'Innovation Quarter Regeneration Fund'.
  6. Marketing and Disposal of the Innovation Quarter - It has been requested that £44k is slipped into 2017/18 in order to facilitate the re-launch of the marketing of the land at the Innovation Quarter.
  7. Castleland Renewal Area - An emergency power was approved on 22nd November 2016 to request a virement of £73k from the Castleland Renewal Area budget to the Main Street Grant Programme budget, which is part of the Tackling Poverty programme. The funding is required to extend a works contract for this scheme, which assists in the redevelopment and conversion of empty shops to bring the space back into use as homes and tackle issues such as housing disrepair and home energy efficiency. The £73k was unallocated and the virement will not impact delivery of the Renewal Area schemes.
  8. Barry Regeneration Partnership - Delegated Authority has been used to apportion funding to the following schemes:

- Sense of Place Project £10.5k

- Project Management Unit £5k

- Holton Road Feasibility £2k.

Resource Implications (Financial and Employment)

  1. There are no direct financial implications of this report.

Sustainability and Climate Change Implications

  1. There are no sustainability and climate change implications.

Legal Implications (to Include Human Rights Implications)

  1. There are no legal implications.

Crime and Disorder Implications

  1. There are no crime and disorder implications.

Equal Opportunities Implications (to include Welsh Language issues)

  1. There are no equal opportunity implications.

Corporate/Service Objectives

  1. Effective monitoring assists in the provision of accurate and timely information to officers and Members and in particular allows services to better manage their resources.

Policy Framework and Budget

  1. This is a matter for Executive decision.

Consultation (including Ward Member Consultation)

  1. Each Scrutiny Committee will receive a monitoring report on their respective areas, which will consider the relevant information relating to the respective Scrutiny Committee. This report does not require Ward Member consultation.

Relevant Scrutiny Committee

  1. All.

Background Papers

None.

Contact Officer

Capital Accountant

Officers Consulted

All Directors.

Responsible Officer:

Rob Thomas, Managing Director